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Company ABC Inc. has a balance of accounts receivable of $111,000. The balance of Allowance for Doubtful Accounts is $800 in a normal credit position.
Company ABC Inc. has a balance of accounts receivable of $111,000. The balance of Allowance for Doubtful Accounts is $800 in a normal credit position. Two thirds of the accounts receivable are current and one third are overdue. ABC Inc. estimates that 1% of the current accounts receivable and 6% of the overdue accounts receivable will be uncollectible. The adjusting entry for uncollectible accounts receivables should be in the amount of:
None of the other alternatives are correct
$2,220
$3,760
$2,960
$2,160
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